FREQUENTLY ASKED QUESTIONS

sidebar-img-faqWhy should I bring my business to the KIC  Free Trade Zone? What special benefits..

KIC provides the following benefits, among others, to its business clients:

100% Foreign Ownership

100% Repatriation of Capital and Profits

Exemption from all Import and Export Duties

Availability of continuous Power Supply

Availability of continuous Water Supply

Free Zone Company Formation is Quicker than Incorporation outside of the Free Zones

Inexpensive Workforce and Easy Recruitment Procedures

Typically, no restrictions on recruiting labour

‘One-stop-shop’ for Administration Services

Simple and fast registration procedures

State-of-the-art communication facilities

State of the art IT and Security Services

Freedom to choose the investment field and legal formula of projects

International liaison offices in Tanzania, Oman, USA & INDIA

Excellent sea port and international airport facilities

Land available to lease for industrial projects

and above all

A proven company with trust to partner.

What is the Location advantage

KIC – is your gateway to African Market

KIC is located in situated on Msata- Bagamoyo District.

Great Connectivity & Access to 6 landlocked countries [Uganda, Congo, Rwanda, Burundi, Zambia and Malawi]

The Proximity to City is less than 100kms

The Proximity to Dar E Salaam Airport 115kms

The Proximity to Dar e Salam Seaport 100kms

Just 30 kms away from new Bagamoyo port [proposed]

 What are the advantages being in Tanzania ?

A Great market with continuing Growth

Tanzania is a rapidly growing emerging  market; it ranks among the 20 fastest growing economies in the world.

The country has exhibited a GDP growth rate of around 7% for past 5 years and it is predicted by the IMF and World Bank to continue this rapid growth for the next decade.

Over the past two decades, it has been transformed from a centrally planned economy to a market oriented system through successful implementation free-market orientated reforms.

The Government has encouraged private sector led growth through restoration  of market forces and less Government intervention in commercial activities.

Tanzania is home of African to a flourishing democracy and prospering economy, Tanzania creates a strong infrastructure for all investments while providing the strong growth and security needed to proposer.

The United Republic of Tanzania is one of Africa’s most peaceful  and politically stable since countries since its independence in 1961.

A Great Strategic Location – Gateway to African Market

The country’s geography is greatly beneficial.

It is connected directly to the Indian Ocean giving it trade links to Asia and sits in between the ocean and 6 landlocked countries (Uganda, Congo, Rwanda, Burundi, Zambia and Malawi) that rely on Tanzania for passage of goods.

The country has 3 deep water ports (Dar es Salaam, Tanga and Mtwara) that are servicing the neighboring countries.

A well-maintained infrastructure and three international airports connect its bustling commercial centers and ensure easy transportation, whether by road or by air

Furthermore, its membership to the SADC Free Trade Area and EAC Common Market, with developed rail and road networks, makes Tanzania a natural transportation gateway for East and Central Africa.

Additional country advantage

Conducive business environment,

Political and macroeconomic stability,

Government Facilitates, Encourages Investment  and Holistic Growth

Abundant natural resources,

Skilled, Educated and hard working Man Power

A sizeable and captive market,

Inherent Entrepreneur skills 

What is the Population in Tanzania and  which are the other countries you can trade with from KIC ?

Name of the country Population
Tanzania 45 million
Uganda 30 million
Congo DRC 75 million
Rwanda 15 million
Burundi 7 million
Zambia 13million
Malawi 17million
Central African Republic 5 million
Angola 25 million
Mozambique 27million
Kenya 46 million

 GENERAL

Q1. What type of business enterprises are permitted in the KIC?

All types of legitimate business operations are permitted in the KIC under industrial, trading and service sectors, subject to approval from the KIC’s Licensing Department.  Please provide us with detailed information on your business plan, and we will  guide you accordingly.

Q2. Can I import and export goods?

Yes, depending on your particular licence.

Q3. Can we sell our product in the local market?

Yes. However, in order to do business outside of the free zone, you will have to pay local distributors or agents, as well as  any relevant customs duties, as the licence issued by the KIC is valid only  inside the free zone.

Q4. Is there any corporate and income tax applied to the companies?

No. There is no corporate or income tax for companies or individuals operating in the KIC.

Q5. Will the Tanzanian Government or the KIC Authority provide financial support for the investment projects in the free zone?

A the current time, neither the Government of Tanzania  nor the KIC Authority provides financial support for investments. However, it is possible to secure financing from private sources, such as international banks. Or alternatively it can be proposed to the Board of KIC, who will take the decision on the merit of the project and other related factors.

Q6. Can I establish a branch of my own company?

Yes. Any company can establish a branch in the free zone. 

Q7. Do I need a local partner to invest in the KIC?

No. The KIC allows 100% foreign ownership.

Q8. Do we need a local sponsor to establish a company in KIC ?

No. The KIC allows you to have 100% company ownership.

Q9. Do banks in the TANZANIA allow companies or individuals to open accounts with US dollars?

Companies or individuals can freely open bank accounts with US dollars and other major international currencies.

Q10. Can I transfer my money outside the country freely?

Yes. The KIC has no restrictions on the movement of capital or profits.

Q11. How do we get more information about Tanzania

Please refer to the main information about Tanzania

Q12. Do I have to employ TANZANIA Nationals in my company?

No. There is currently no law requiring businesses in the KIC to recruit TANZANIA Nationals, and you are free to hire staff from any country.

Q13. What is the maximum number of employees allowed?

The number of employees depends on the nature of the proposed project, the size of the facility and the type of business.

Q14. Can I transfer my driving licence?

Yes. You may be eligible to transfer your existing driving licence, without having to take a driving test or attend a driving school, if you have a valid licence from one of several selected countries. In order to get a TANZANIA driving licence, you must have current residency status in the TANZANIA.

LICENCING

Q1. What sorts of licences are issued by the KIC?

Setting up a company in KIC requires a business license. You can obtain one or more business licenses of any of the below types. Each licence is valid for a year, starting from the date of issue, and must be renewed annually.

Commercial Licence

Consultancy/Services Licence

Industrial License

General Trading

Q2. Can I have a licence from the KIC but operate from Dar E Salaam or another city ?

The licence issued by KIC is valid for operating your business only inside the free zone. This licence cannot be used for setting up a business in any of the other emirates. Companies are not authorised to do business in the TANZANIA market. A local agent or distributor has to be specially appointed to conduct business activities in the TANZANIA market.

Q3. Can I be a partner in more than one company?

Yes KIC does not levy any restriction on the number of businesses in which an investor can participate.

Q4. Is it possible to establish a branch office of my company in the city of Dar e Salam or other TANZANIAN cities?

Yes. There are no restrictions on establishing a branch outside the Free Trade Zone. The parent company should have completed at least one year of operation, and we would require a list of documents from the parent company to be attested and notarised by TANZANIA embassy. However, a local partner is required, since it is outside the free zone.

 Q5. What do I need to know about business licences?

Applicants should be aware of the following points when applying for a business licence: Every company operating within the KIC is required to obtain a business licence (also known as a trade licence). A business licence is a time-limited permit granted to a company to undertake commercial, consulting or industrial activities within the KIC.

Q6. Do I have to renew my business licence on a yearly basis?

Yes. Each licence is valid for a year, starting from the date of issue, and must be renewed annually.

Q7. Is it a requirement to submit an audit report?

Yes. Submission of audit reports is a mandatory requirement for business licence renew

 

SETTING UP A BUSINESS

Q1. What kinds of legal entities are offered by the KIC?

The legal entities are:

 – New establishments: A new business entity with a sole business owner

 – New establishments – A new business entity owned by two or more partners

 – Branches: local branch (A branch of a domestic firm residing in the TANZANIA The parent company should have existed for more than a year. This also applies to a subsidiary company)

 – Foreign branch (A branch of a foreign firm residing outside the TANZANIA The parent company should have existed for more than a year. This also applies to a subsidiary company)

Q2. Which kinds of companies can be part of the KIC?

As a provider of an ideal business environment, service provider; traders and manufacturers will definitely find their place in the free zone.

Q3. How do I get started?

Write to us stating the  details about the contact person, the nature of the intended business activities and the required KIC products and services

Depending on the project profile and package selected, you will be required to submit supporting documentation, such as bank references, passport(s) and other legal documents.

To finalise the application, payment must be duly processed.

After obtaining a business licence, you can apply for the approved number of visas and commence business activities in the KIC. 

Q4. What documents do I need to apply?

The documents needed are:

Application form [ will be provided upon request]

Brief project description/Business Plan

Copies of passport(s)

Bank reference letter

List of trade names

Declaration form [ will be provided upon request]

Additional documents required for Industrial License

Feasibility study (brief)

      Effluent treatment and waste management plan

      Plant layout equipment list

      Environmental impact assessment study

      Power and water requirements

      Detailed process description

      Material storage and handling plan

CUSTOMS

Q1. What documents does Customs need to see?

Customs needs to see the following documents:

Original invoice. This should be produced by the original exporter and legalised by a recognised authority in the country of export.

Export custom declaration, from terminal of arrival (In case of exporting).

Packing List

Q2. Where is the KIC Customs office?

The KIC operates a Customs Office on the premises of its Business Park For any issues or inquiries related to Customs regulations, procedures or fees, you are kindly requested to visit this office or call.